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The Shell Hunter is a take-out food store at a popular beach resort. Candace Wallace, owner of the Shell Hunter, is deciding how much refrigerator
The Shell Hunter is a take-out food store at a popular beach resort. Candace Wallace, owner of the Shell Hunter, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows: (Click to view the data.) Wallace has a maximum front shelf space of 12 feet to devote to the four drinks. She wants a minimum of 1 foot and a maximum of 6 feet of front shelf space for each drink. Read the requirements. Data table Natural Cola Lemonade Punch Orange Juice Selling price per case $ 18.80 $ 20.20 $ 27.50 $ 39.00 Variable cost per case $ 14.40 $ 16.40 $ 20.70 $ 29.90 Cases sold per foot of shelf space per day 24 6 5 4 Requirement 1. Calculate the contribution margin per case of each type of drink. Natural Cola Lemonade Punch Orange Juice Selling price per case $ 18.80 $ 20.20 $ 27.50 $ 20.70 39.00 29.90 14.40 16.40 Variable cost per case Contribution margin per case Natural Cola Lemonade Punch Orange Juice Contribution margin per case $ 4.75 $ 3.50 $ 6.00 $ 9.50 x Cases sold per foot of shelf space per day 4 4 6 33.25 $ 14.00 $ 57.00 Daily contribution margin per ft of shelf space 24.00 $ Allocate the shelf space to each product and show the effect it will have on the Seaside Shack's operations. (Round your answers to the nearest cent.) Total Feet of per Foot of Shelf Space Shelf Space per Day Cola Lemonade Punch Natural Orange Juice Total
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